TradingSolutions - Chart Pattern Learning Software for Traders
Ever wondered if you could feed a ton of historical stock data into a computer program and after some time, it would have mastered the trading characteristics of that stock? Well, wonder no more as the trading software is available and it is called TradingSolutions. TradingSolutions is a very powerful software that is able to learn patterns from historical stock, futures, forex and other financial data for any market both in the US and internationally. It does this by combining technical analysis with artificial intelligence (AI) technologies using neural networks and genetic algorithms.
Do Neural Networks Really Work? Sample Study: Forecasting the Forex Market
Christian L. Dunis, a Professor of Banking & Finance at Liverpool Business School and Mark Williams from the Centre for International Banking, Economics and Finance did a sample study called Modeling and Trading the EUR/USD Exchange Rate: Do Neural Network Models Perform Better?. The conclusion of this study highlights that a neural network model is applicable to the prediction of foreign exchange rates. The neural network model in this study outperformed all other models by having the highest Annualized Return of 29.68% in comparison to the other models averaging 15.65%. In addition, the neural network model had the highest percent of winning trades with 57.24% and the other models having an average of 47.75%.
Without getting too technical, what a trader has to do is to create a model within TradingSolutions, to set specific technical criteria to guide the software. The AI engine will then take over and learn the turning points of the instrument specified so as to enable it to predict future buy and sell points. TradingSolutions comes in an End-Of-day version for swing traders and a Real-Time version for daytraders.
End-Of-Day (EOD) Version
This version is targeted at traders who trade longer timeframes e.g. using daily, weekly or monthly charts. The data providers that are built-into the system include eSignal for streaming real-time data and ProphetFinance and eSignal for EOD data. There is also an import feature allowing data from other vendors to be imported into TradingSolutions using text files or using the commonly used Metastock format.
Real-Time (RT) Version
The real-time version runs models which can be based on any periods between 1-minute and 4-hours. This version accepts real-time streaming data from eSignal, IQFeed or Interactive Brokers. Whenever a new signal is generated by one of the models, a trading alert will immediately appear for you to place the trade. A free add-on called Trader68 is available to automatically route orders from your system to your broker whenever a signal is triggered. With the capabilities of Trader68, you can essentially create an Automated Trading System (ATS) to trade many markets around the globe and also around the clock.
For an interactive example of modeling in TradingSolutions, download the free evaluation version of the software and view the “Getting Started” manual in the Help menu. TradingSolutions provides a fully functional evaluation version for 30 days for you to try out. This download includes animated demonstrations that introduce the features and concepts of TradingSolutions. You can also perform the annotated step-by-step tutorials to see exactly how the software is used. Plus, the evaluation version gives you the opportunity to try out the TradingSolutions Solution Service, which provides you with trading signals and commentary after every trading day.